IRS Refund – Time Is Running Out to Collect 2006 Refund
Category Finance | Monday, March 15th, 2010
IRS Refund
Here is a persistent myth about taxes: If you are getting a refund, there is no time limit on how long you have to file your federal income-tax return.
That may sound logical. After all, if you don’t claim your refund on time, you’re just hurting yourself.
But it’s flat wrong. There are strict time limits — and many people appear to be unaware of that.
The Internal Revenue Service announced recently that it’s trying to deliver refunds totaling more than $1.3 billion to nearly 1.4 million people who still haven’t bothered to file a federal income-tax return for the 2006 tax year.
To collect, these people typically must file their returns with the IRS no later than April 15 of this year, the IRS says.
“In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund,” according to the IRS. “If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. For 2006 returns, the window closes on April 15, 2010.”
The law requires that the return be “properly addressed, mailed and postmarked by that date,” the IRS says. There’s no penalty for filing a late return that qualifies for a refund.